Each of the Following Ideas Is Central to Economics, EXCEPT

question 190

Multiple Choice

Each of the following ideas is central to economics, EXCEPT:

• A) "good institutions can eliminate economic trade-offs."
• B) "people react to incentives."
• C) "specialization and trade benefit everyone."
• D) "prices rise when the government prints too much money."

---

Definitions:

Pareto Optimal

An allocation of resources from which it is impossible to reallocate without making at least one individual worse off.

Utility Function

A mathematical representation that captures the level of satisfaction or happiness that consumers derive from consuming goods and services.

Initial Endowment

The original distribution of resources, wealth, or abilities that individuals or groups possess in an economic model.

Pareto Optimal

A state of allocation of resources from which it is impossible to make any individual better off without making at least one individual worse off.